In accordance with the FDI policy guidelines, “Marketplace model of e-commerce means providing of an i . t platform by an e-commerce entity on a digital and electronic network to do something as being a facilitator between buyer and seller.”

The primary feature of the Marketplace model could be that the e-commerce firm, like Amazon, Flipkart, Snapdeal, etc. give you a platform for purchasers to have interaction using a large numbers of sellers onboard to buy something online. Thus, whenever a product from amazon is bought, you might be actually buying it coming from a registered seller with it. As such the merchandise is not directly sold by amazon. Here, amazon is only a website platform which facilitates a conference location for someone to meets numerous seller and provide various options and price levels for the service or product.
Whereas the Inventory-led websites have specialized but limited selection along with the serious customers may join to those website for the specific selection, for example caratlane.com for precious jewellery, booknest.in to buy books, swiggy.com for ordering food, 1mg.com for medicines etc.

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Anchor Seller and a Level Arena
Almost all of the marketplace players have anchor sellers on panel, who are either their subsidiary entities or perhaps a large enterprise who may have entered into privileged handles them that helps them offer great deals or discounts for the customers. This will likely incorporate a higher discount on products, Free freight, compensation for sales returns etc. The losses incurred on these deals /services are compensated by the Marketplace Player with a pre-agreed arrangement.
It’s easy to see that some goods are available on your website at 40% -60% discounts that’s even a hardship on the producer to provide. It’s easy to see that you can find 40-50 sellers for the academic books but excepting one anchor seller, no one is able to provide such exciting discounts or offers. They even mask other seller completely and corner almost entire need for these products, thereby also frustrate these multiple genuine sellers to arrive at absolutely free themes with their honest pricing offers.
Virtually all e-commerce players take presctiption the verge of re-discovering their business models and dream to become profitable sooner. Truth be told, none have been capable of seeing a penny in profit up to now. Many big and promising e-commerce and unicorn players have perished because of unsustainable losses and many have been sold-out to other people. Year 2017 would see many more to fasten belts and continue to keep solve this riddle lest they perish within the race for the survival in the fittest.
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